Find the annual percentage yield (APY). A bank offers an apr of 2.3% compounded daily

Answer 1

To find the annual percentage yield (APY), we can use the formula:

APY = (1 + r/n)^n - 1

Where:
r = annual interest rate (in decimal form)
n = number of compounding periods per year

In this case, the annual interest rate (APR) is 2.3% and it is compounded daily. So we have:

r = 2.3% = 0.023 (in decimal form)
n = 365 (number of days in a year)

Using the formula, we can calculate the APY:

APY = (1 + 0.023/365)^365 - 1
≈ (1.0000631504)^365 - 1
≈ 0.0241436

Therefore, the annual percentage yield (APY) is approximately 2.41436%.